Gulf Shores, AL, is a coastal town located in Baldwin County, known for its white sand beaches and clear blue waters. This small town has seen significant growth in its (Airbnb) short-term rental market in recent years, with investors flocking to the area to cash in on the vacation rental boom.
In this blog post, we will take a closer look at the current state of the (Airbnb) short-term rental market in Gulf Shores, AL, using data from Zillow, Chalet, and SmartAsset.
Overview of the Airbnb Rental Market
According to Zillow, homes in Gulf Shores, AL, appreciated 0.00% in the last year, with a median home value of $451,166. This rapid appreciation is driven, in part, by the growing demand for vacation rentals in the area.
The annual revenue for short-term rentals in Gulf Shores, AL, is $65,600.
Supply
The most popular homes are 3-bedroom homes, comprising 31.13% of inventory. This is followed by 2 and 4-bedroom homes at 28.27% and 18.27% of the total inventory, respectively.
The Profitability of Short-Term Rentals
The average gross yield for short-term rentals in Gulf Shores, AL, is still relatively high at 14.54%. This is above the national average of 7.6%, making Gulf Shores, AL, an attractive market for short-term rental investors. Additionally, the average property tax in Gulf Shores, AL, is low, with SmartAsset reporting only 0.36%.
Average Daily Rate
The median ADR for the market is $354.50. The Average Daily Rate is the highest for 9 bedroom homes ($662) followed by 12-bedrooms and 10 bedrooms at $646 and $576 respectively.
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Short-Term Rental Regulations
Finally, it is worth noting that short-term rental regulation in Gulf Shores, AL, is investor-friendly. Unlike some other vacation rental markets, there are no restrictions on the number of days a property can be rented out. This means that investors can rent out their properties year-round and maximize their profits.
Median Household Income & Population
The median household income in Gulf Shores, AL, is $53,034. This is slightly lower than the national median household income of $70,784.
According to the United States Census Bureau, the population of Gulf Shores, AL, was 15,763. This number may vary depending on the season, as Gulf Shores, AL, is a popular vacation destination.
Hosts
The market is dominated by property management firms. The largest host is Vacasa Alabama with 23.71% of the total inventory and an average review of 4.53⭐️s .
Climate
Gulf Shores, AL, has a humid subtropical climate, with hot and humid summers and mild winters. The average temperature in the summer months is around 89 degrees Fahrenheit, while the average temperature in the winter months is around 58 degrees Fahrenheit.
Sports Teams & Colleges
Gulf Shores, AL, is home to several sports teams, including the Gulf Coast Texans, a minor league soccer team, and the Gulf Shores Dolphins, a high school football team.
There are no colleges or universities located in Gulf Shores, AL. However, there are several institutions of higher education located nearby, including the University of South Alabama and Faulkner State Community College.
Guests
The majority of the guests come from outside of Alabama. 2.16% of all guests are from Birmingham followed by New Orleans with 1.84%.
Crime Rate
According to NeighborhoodScout, Gulf Shores, AL, has a crime rate that is lower than 7% of all other cities in the United States. The overall crime rate in Gulf Shores, AL, is 32 crimes per 1,000 residents, which is higher than the national average.
Visitors & Tourist Attractions
Visitors to Gulf Shores, AL, come from all over the United States, with many coming from nearby states like Florida, Georgia, and Tennessee. Gulf Shores, AL, is also a popular destination for Canadian visitors.
According to the Gulf Shores and Orange Beach Tourism Board, Gulf Shores, AL, and its neighboring town of Orange Beach, AL, receive more than 6 million visitors each year.
Gulf Shores, AL, is home to several popular tourist attractions, including Gulf State Park, which offers miles of hiking and biking trails, fishing piers, and a golf course. Other popular attractions include the Alabama Gulf Coast Zoo, the Gulf Shores Public Beach, and the Gulf Shores Museum.
Peak Season
The peak season in Gulf Shores, AL, is typically during the summer months, from June to August. This is when the weather is at its warmest, and schools are out for summer break. However, Gulf Shores, AL, is also popular during the spring and fall, when the weather is milder and there are fewer crowds.
Conclusion
In conclusion, Gulf Shores, AL, is a growing short-term rental market with significant potential for investors. Despite the recent decrease in supply, the profitability of short-term rentals in the area remains high, with an average gross yield of 14.54%. The investor-friendly regulations and low property tax make Gulf Shores, AL, an attractive market for vacation rental investors. However, investors need to keep an eye on the changing market conditions and adjust their strategies accordingly. As the vacation rental market continues to evolve, those who stay ahead of the curve will be the most successful.
